California Consumers See Credit Scores Rise and Fall

According to a recent poll conducted by credit bureau Experian/Gallup, 29 percent of California consumers improved their credit scores by as much as 50 points during the first half of 2007.

Between January and June 2007, 29 percent increased their credit score from 1-50 points, while 3 percent saw a rise of 51-100 points.

A small fraction, 0.2 percent, saw credit scores rise more than 100 points, while 42 percent of consumers saw no change in their credit score.

Conversely, 22 percent of consumers experienced a drop in their credit score between 1-50 points, while 3 percent decreased by a whopping 51-100 points.

A surprising 0.8 percent of California consumers saw their credit score plunge by 100 points or more, quite possibly the same borrowers who missed mortgage payments amid the resetting interest rate environment.

Americans continue to battle debt and deal with less favorable financing terms as the credit crunch extends to the consumer financing segment.

Interestingly, another Gallup poll conducted in early October found that only 13% of consumers said they knew someone who had filed for bankruptcy or who had experienced a foreclosure during the past three months, only a small rise from the 12% in September.

During October, roughly one in six consumers (17%) said they knew someone close to them who had been turned down for credit they applied for during the past three months, marking little change over the last six months.

So maybe it’s not as bad it some may think, though it’s clear that credit card issuers are offering higher APR credit card offers and fewer no fee balance transfer deals.

Kudos to the borrowers who were able to boost their credit scores. If your credit score needs a kick, take a look at a variety of ways to raise your credit score.